RT reported that Ukraine has just received the first $1 billion of a $20 billion loan supported by the US, using revenue from frozen Russian assets - Ukrainian Prime Minister Denis Shmigal announced on December 25. Russia immediately condemned this as an act of "looting" and pledged to respond with legal measures.
The loan is part of a $50 billion support package funded by interest on about $300 billion worth of frozen Russian assets. After the conflict in Ukraine escalated in February 2022, the United States and other Western allies froze the assets of the Russian Central Bank.
Two weeks ago, the US Treasury Department transferred $20 billion to a World Bank fund to support Ukraine. The European Union pledged another $20 billion, while the G7 contributed $10 billion. The loan is expected to be repaid over 40 years.
"We expect all Russian state assets to be confiscated and used for the reconstruction of Ukraine," Prime Minister Shmigal wrote on social network X.
In addition to the Russian asset loan, Prime Minister Shmigal also announced that Ukraine has received an additional $1 billion from Japan and the UK through a World Bank program. From 2022, all of Ukraine's government, military and public services will rely on foreign aid.
With the 2024 budget forecasting revenues of $49 billion and spending of $87 billion, Ukraine faces a deficit of tens of billions of dollars.
The Kremlin has called the freezing and seizure of Russian assets “predatory” and warned that it could set a dangerous precedent and undermine global trust in the US and its allies.
The International Monetary Fund (IMF) also warned that seizing Russian assets could seriously damage the West's international financial reputation.
Kremlin spokesman Dmitry Peskov said Russia would sue those involved in the confiscation of its assets.
The Russia-Ukraine conflict has now expanded beyond the battlefield to the international financial arena. The use of frozen assets to support Ukraine has not only heightened tensions between Russia and the West, but has also raised questions about its legality and the long-term consequences for the global financial system.
